US chipmaker Intel will spend $25 billion on a new factory in Israel, Prime Minister Benjamin Netanyahu said on Sunday, calling it the largest-ever international investment in the country.
The factory in Kiryat Gat is due to open in 2027, to operate through 2035 at least and to employ thousands of people, Israel’s Finance Ministry said, adding that under the deal Intel will pay up a 7.5% tax rate, up from the current 5%.
During its almost five decades of operations in Israel, Intel has grown to become the country’s largest privately held employer and exporter and a leader of the local electronics and information industry, according to the company’s website.
In 2017, Intel bought Israel-based Mobileye, which develops and deploys advanced driver-assistance systems, for $15 billion. Intel took Mobileye public last year.
Announcing the deal in televised remarks to his cabinet, Netanyahu called it “a tremendous achievement for the Israeli economy – NIS 90 billion – the largest investment ever by an international company in Israel.”
Finance Minister Bezalel Smotrich holds a press conference with bereaved families in the Ministry of Finance in Jerusalem on January 8, 2023. (credit: YONATAN SINDEL/FLASH90)In a statement, Intel said its Israel operations had “played a crucial role” in the company’s global success.
“Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs … and we appreciate the continued support of the Israeli government,” it said.
Netanyahu on the Intel factory: “A tremendous achievement for Israel”
“Intel’s choice to invest in Israel is a vote of confidence in the Israeli economy at a time of global uncertainty,” said Finance Minister Bezalel Smotrich.
“An investment of unprecedented magnitude will affect the economy’s growth in the coming years, promoting high-quality and high-paying employment in the periphery.”
According to Economy Minister Nir Barkat, “This is further evidence of a great deal of credit and trust Israel’s hi-tech industry has among top executives in the global economy.”
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